Systems and methods for trading and originating financial products using a computer network

• US 20020059131A1
• Filed: 08/10/2001
• Published: 05/16/2002
• Est. Priority Date: 08/10/2000
• Status: Active Grant

• Current Assignee: The DEBT Exchange Incorporated
• Original Assignee: The DEBT Exchange Incorporated
• Inventors: Jakubowski, William J., Hounsell, Bruce K., Goodwin, Thomas R., Greenland, Kingsley J. II
• Granted Patent: US 7,035,820 B2
• Time in Patent Office: Days
• US Class Current: 705/37
• CPC Class Codes: G06Q 30/08 Auctions
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

The invention relates to systems and methods for trading financial products over a computer network, such as the Internet. In one embodiment, the invention provides a method for trading financial products over a computer network. Seller information is received from a first client, the seller information relating to a financial product offered for sale on behalf of a seller, at least some of the seller information comprising due diligence information, the due diligence information capable of fulfilling at least a portion of a request for due diligence on the financial product. The seller information about the financial product is stored in a database. A second client is provided with an opportunity to obtain the due diligence information on behalf of a potential buyer of the financial product. A bid is stored for the financial product from the second client in the database, if it can be shown that second client has obtained the due diligence information.

Claims

1. A method for trading financial products over a computer network, comprising:

receiving seller information from a first client, the seller information relating to a financial product offered for sale on behalf of a seller, at least some of the seller information comprising due diligence information, the due diligence information capable of fulfilling at least a portion of a request for due diligence on the financial product;

storing the seller information about the financial product in a database;

providing a second client with an opportunity to obtain the due diligence information on behalf of a potential buyer of the financial product; and

storing a bid for the financial product from the second client in the database, if it can be shown that second client has obtained the due diligence information.

2. The method of claim 1 wherein the step of receiving seller information further comprises receiving diligence information that comprises an electronic representation of a physical due diligence document.

3. The method of claim 2 wherein the step of receiving seller information further comprises receiving diligence information that comprises an electronic image substantially replicating the physical due diligence document.

4. The method of claim 2 further comprising the step of receiving a request from a second client for at least some information relating to the financial product.

5. The method of claim 1 further comprising the step of providing a second client with a list comprising at least one financial product offered for sale.

6. The method of claim 1 further comprising the step of searching the database for at least one financial product meeting a condition provided by a second client.

7. The method of claim 1 further comprising the step of providing at least one stored bid to the first client.

8. The method of claim 1 further comprising the step of accepting a stored bid on behalf of the first client if the stored bid satisfies the seller.

9. The method of claim 8, wherein the step of accepting a stored bid on behalf of the first client if the bid satisfies the seller further comprises receiving a notification that the seller has accepted the stored bid.

10. The method of claim 8, wherein the step of accepting a bid on behalf of the first client if the bid satisfies the seller further comprises determining that the stored bid meets a predetermined condition set by the seller.

11. The method of claim 8 further comprising the step of storing trade history information in the database, the trade history information relating to at least one bid for a financial product that was accepted.

12. The method of claim 11, wherein the step of storing information in the database relating to at least one accepted bid further comprises storing information about at least one of the following:

terms of the bid, terms of the financial product, time periods, conditions, locations, appraisals, discounts, liens, status, sponsors, servicing type, status, maturity, principal balance, financial product type, origination date, monthly payment, maturity date, interest rate, interest accrual method, and performance level.

13. The method of claim 1 further comprising the step of computing a price for the financial product.

14. The method of claim 11 further comprising the step of computing a price for the financial product, wherein the step of computing the price for the financial product is based at least in part on at least one of the following:

market information, seller information, due diligence information, and trade history information.

15. The method of claim 14, wherein the market information includes at least one indicator selected from the group consisting of U.S. Federal Funds rate, U.S. prime rate, bond rate, U.S. Treasury bill rate, U.S. Treasury bond rate, U.S. Treasury note rate, S&

P 500 index, Dow Jones Industrial Average, and NASDAQ Combined Composite Index.

17. The computerized exchange of claim 16, wherein the information relating to the at least one financial product for sale further comprises due diligence information, the due diligence information capable of fulfilling at least a portion of a request for due diligence on the financial product.

18. The computerized exchange of claim 17 wherein the server is further programmed to provide information about the financial product to a client in response to a request for information from the client.

19. The computerized exchange of claim 18 wherein the server is further programmed to provide the seller of the financial product with a bid on a financial product that was received from a bidder if the bidder has received the due diligence information.

16. A computerized exchange for trading financial products, wherein the exchange is accessible using a computer network, comprising:

a server in operable communication with a client, the server programmed for receiving requests from a client to price a financial product offered for sale;

a pricing engine in communication with the server, the pricing engine computing a price for the financial product offered for sale, the price based at least in part on at least one of the following;

market information, information that the seller has provided about the financial product. information that the client provides about the financial product, due diligence information, and trade history information; and

a database storing information relating to the least one financial product offered for sale and the computed price for that financial product.

20. A computerized system for trading financial products, comprising:

means for receiving information about at least one financial product for sale, the information including due diligence information capable of fulfilling at least a portion of a request for due diligence on the financial product;

means for computing a price on the financial product, the price based at least in part on at least one of the following;

market information, information received about the financial product, due diligence information, and trade history information;

means for providing a potential bidder on the financial product with the due diligence information and a price for the financial product; and

means for storing a bid on the financial product if the bidder has received the due diligence information on the financial product.